3 Types of Bad Tenants and How to Manage Them
Whether or not it was you who selected the tenant, it’s your job to figure out how to handle these worst-case scenarios. Luckily, we’re here to help. If you want a fool-proof tool to avoid bad tenants and help you choose the best candidates for every property, check out Leasey.AI—the software’s AI tenant scoring tool makes it easy to filter out incompatible and red-flag tenants, saving you time and making your life easier.Bad Tenant #1: The Party Animal
It’s every property manager’s nightmare: they meet a seemingly nice, professional human at the showing, only to find a raging party animal moving in on the first of the month.
And look, don’t get me wrong. A nice get-together every now and again isn’t a big deal. A holiday party with friends or a graduation celebration dinner isn’t unreasonable by any stretch of the imagination.
But that’s not the way the party animal operates.
They go all out—bass-heavy music that reverberates through the entire building. Party attendees who have no respect for the property. And ticked-off neighbours who complain to the city about bylaw infractions.
The ironic thing is that party animals are the furthest thing from fun. They are a headache—just like the headaches they endure after every crazy night.
So, what can you do about it?
Establishing Rules With Problem Tenants
The thing about the party animal tenant is that they act a lot like children: immature, inconsiderate, and reckless.
So let’s take a look at a scientific study that outlines research-backed ways to manage large groups of rowdy people: a tried and true classroom management technique.
The study found that the best way to manage an unruly classroom was by developing a relationship with the students. The relationships that performed best were those that balanced teacher dominance with cooperation.
Let me translate that for a tenant-landlord relationship:
First, you need to be a consistent presence in the tenant’s life. Not a nameless, faceless book of rules, but a person who the tenant sees and respects. Children in the studies were more likely to obey rules and meet the expectations of teachers they knew well. So plaster on that smile and give your best royal wave.
How you can humanize yourself to your tenants, you ask?
A few ways could be hosting events, having conversations with them to develop a personal connection, and building trust with them through consistency.
Second, and this part is important, you need to establish your expectations as soon as you notice an infraction or bad behaviour. Children in the studies had fewer instances of acting out when the first instance was corrected.
When your tenants move in, talk with them about your policy on parties. If you’re already dealing with someone who has been consistently breaking your rules, outline a clear path forward for them. Include consequences and follow through.
Pro tip: before you outline consequences, make sure you’re within your legal right to exercise them. Threatening consequences that you cannot legally follow through with will damage your authority and worsen the problem.
Bad Tenant #2: The White Rabbit
I can almost guarantee that every property manager has dealt with a White Rabbit tenant at some point in their career.
Catching Lies and Reinforcing Deadlines for Problem Tenants
First, check yourself. Just because you think a tenant is lying about why their rent is late, doesn’t mean you’re right. Science shows us that people, on average, accurately spot lies only 54% of the time. So even if you feel like someone is lying, take a deep breath and remember the facts. Next—regardless of whether the tenant is lying about their excuses or not: rules are rules. If you have a late payment policy outlined in your lease agreement (which you absolutely should) then excuses are irrelevant. You’re within your legal right to collect the fees outlined in your contract or end the tenancy. But, if you want to avoid late payments, try setting up automated text and email reminders. Studies show that reminders have a significant positive impact on no-show rates, which means they could help reduce late payments as well.Bad Tenant #3: The Energy Vampire
Unfortunately, these are not the gorgeous, sparkly vampires in your daughter’s tween novels. In fact, they may be my personal least favourite type of tenant. Energy vampire tenants are flat-out complainers. The eternal pessimists. They’re always calling to complain about another resident in the building or a sound coming from an uncontrollable source down the block. They’re the same ones who call to get a shower drain unclogged, even though their hair and overpriced bath bomb scum are what’s clogging it. You’ll know these tenants on a first-name basis because they never stop blowing up your phone’s notifications. So how can you get them to ease up, and only come to you when they have a real problem?Setting Boundaries With Problem Tenants
One word, weary traveller: boundaries. I know, I know. A foreign concept for property managers, but it’s possible. Setting boundaries with your tenants is essential, especially with energy vampire tenants. Failing to do so can drain your mental health and have a real impact on your ability to perform in other areas of your work. Studies of boundaries in professional settings found that setting boundaries was an effective way to improve relationships. This is especially true when dealing with people who have a tendency to take a lot of mental and emotional labour from you… Like the dreaded energy vampire who won’t stop texting to complain about the smell of her neighbour’s cooking. But how do you set boundaries effectively? First: you need to understand your own boundaries before you can express them to others. Make a list of hard (meanings things you absolutely will not do) and soft (meaning things you would prefer to avoid) boundaries. Here are some examples:- Hard boundaries: I will not respond to non-emergency messages and calls between the hours of 9 PM and 9 AM. I will not tolerate disrespectful and abusive language directed towards me or other tenants. I will report all threats or instances of violence to the police immediately.
- Soft boundaries: I would prefer to not engage in venting sessions about other tenants. I would prefer to communicate via text message or email, rather than calls. I will respond within 24 hours to non-emergency maintenance requests.
Evicting Bad Tenants
Finally, comes the worst-case scenario. When you have a problem tenant that refuses to comply with the terms of their lease agreement, sometimes there’s not much else to be done. While it’s an awful part of the job, evictions are sometimes necessary. I cannot stress this enough: it’s incredibly important to know your rights as well as the tenant’s rights when it comes to evictions. Evicting someone from their home is a massive deal. It must be taken extremely seriously. If you need to end a tenancy due to repeated and consistent infractions, proceed with caution. Check your federal and local government’s rules and consult with a legal professional if you’re unsure.Improve Tenant Relations With Leasey.AI
Handling tricky tenants is no walk in the park, but there are tools to make it easier. Leasey.AI is a property management software that streamlines and automates the leasing process. The software helps you find better tenants in a fraction of the time, so you won’t have to deal with party animals or energy vampires any more. The property managers already using our software have seen mind-blowing results. We’re talking:- A 70% reduction in manual work
- 3X more qualified leads
- Over 20 hours saved per listing